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Security Breach Impacts DeltaPrime DeFi on Arbitrum and Avalanche Blockchains
Severe Financial Loss and Investigations Underway
DeltaPrime DeFi has recently fallen victim to a significant security breach that has affected its operations on both the Arbitrum and Avalanche blockchains. This breach has resulted in an estimated financial loss of around $4.8 million. As a response, DeltaPrime has taken the proactive step of pausing affected pools and is currently conducting a thorough investigation into the incident.
Exploit Details and Strategic Moves by the Attacker
The exploit was executed by taking advantage of a lack of input validation during rewards claiming. The attacker manipulated the system by introducing a malicious pairing that allowed them to substitute the collateral asset with a reward asset. By converting the collateral into a reward, they were able to withdraw the initial funds used as collateral, leaving the debt unpaid.
Additionally, the attacker strategically invested $1.3 million in liquidity for LFJ (formerly Trader Joe) and utilized the Stargate protocol to farm USDC tokens, enhancing their efforts to monetize the stolen funds.
Repeat Attack Raises Concerns
This incident marks the second attack on DeltaPrime DeFi this year, following a similar breach in September 2024 that resulted in a $6 million loss. In that previous attack, unauthorized access to key liquidity pools was granted due to the protocol’s admin losing access to a critical private key.
DeltaPrime’s team is actively working to analyze and address the current security breach to prevent future incidents. However, this latest breach has raised serious doubts about the protocol’s security measures and its ability to protect user assets effectively.
Disclaimer: This news article does not provide trading or investment advice. It is essential to conduct thorough research before engaging in cryptocurrency investments or services.
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